Management of First Majestic is committed to building a mid tier Silver producing mining company based on an aggressive development and acquisition plan with a focus on Mexico.
First Majestic owns the La Parrilla Silver Mine located outside the city of Durango. Silver production is presently running at at 200 tonnes per day. Mine development and mill improvements are underway to advance production to 800 tonnes per day by August. At that rate, production will reach 2 million ounces of Silver per year.
First Majestic also is developing the Dios Padre Silver Mine which is believed to contain a large high grade silver resource and appears amenable to open-pit mining. Definitive drilling has commenced to define a large enough 43-101 compliant resource in order to make a production decision later this year.
The Candamena Mining District is a large 5,215 hectare property hosting several highly mineralized areas. The focus of work presently underway is on the La Verde Silver Mine where it is believed that a large silver resource can be developed.
Management feels strongly that investors will witness a dramatic bull market in precious metals over the coming years. For this reason, several advanced properties are either presently under development or are being investigated for potential acquisition. Management is determined to expand First Majestic's asset base over the coming months.
Projects
Chalchihuites Properties
Strategically located only 60 km to the southeast from La Parrilla Silver Mine, First Majestic optioned to acquire 487 hectares of a contiguous land package comprising three claim groups containing 4 previously operated mines. The Perseverancia Silver Mine (6 claims), the San Juan Mine (8 claims) La Esmeralda Mine (7 claims), and the Magistral Mine (1 Claim) are located in the Chalchihuites mining district located at the Western portion of Zacatecas State in the municipality of Chalchihuites, and 150 km to the northwest from Zacatecas City.
A total of eight agreements were entered into to secure the land package. The properties host silver, copper, lead and zinc mineralization with a potential for near term silver production which could be processed at the La Parrilla. The properties have history of silver-lead-zinc and copper-gold production with extensive underground workings. The properties host potential for manto style silver-lead-zinc replacement type ore bodies, chimney type gold-silver-lead-zinc-copper ore bodies and silver vein type ore bodies and represent significant exploration potential.
La Parrilla Silver Project
The La Parrilla Silver Mine is 100% owned and comprises a complete mill and underground mine facility which began operation in October 2004. In addition to a land package consisting of over 300 hectares, regional infrastructure is excellant. Within the 13 exploitation concessions, twelve of the concessions are in a single contiguous block, known as Los Rosarios, which covers the La Rosa mine. Other historic silver producing areas within the property boundaries are know as the San Jose, San Marcos and San Nicolas mines. Presently, silver ore is being mined at the La Rosa and San Marcos areas.
The La Parrilla is located 65 km due southeast of the city of Durango in the western part of the Mexican Altiplano at 23 degrees 44' 16" North latitude and 104 degrees 06' 26" West longitude. The nearest towns are San Jose de la Parrilla, 1.5 km to the north of the property, and the larger Vicente Guerrero, 16 km to the southeast.
Dios Padre Silver Mine
The Dios Padre Silver Mine is located in the Municipality of Yecora in the Sierra Madre mountain range in the extreme east of the State of Sonora in Mexico. The deposit has a long but poorly recorded history of exploration and mining. The available documentation is largely in the form of a variety of visiting consultants' reports and a recent limited drilling evaluation report. The deposit is a two hour drive from Hermasillo; one hour of which is on a recently improved gravel road.
The deposit is epithermal in nature and of the low-sulphidation type. It occurs within an irregular oval microgranitic stock whose gross morphology is probably fault bounded. Silver mineralization was emplaced along the margins and tapering ends of the intrusive, in low-angle internal cooling joints and within steep breccias and in cross-cutting fractures.
Candamena Mining District
The Candameña property covers an area of 5,215 hectares and is located in a remote area of the Barranca section of the NW Sierra Madre Occidental in the State of Chihuahua close to the border with Sonora. The property can be reached from either Hermosillo or Chihuahua via Highway 16 that connects both cities. The Candameña contains several expressions of mineralization that range from anomalous alteration zones with little to no exploration to mineralized areas that were the target of more intense exploration work and historic mining. The area within this large land package of special interest and thus the focus of the present program is the La Verde Silver Mine. Mapping and surveying in this area is underway. Road construction will begin in June to allow for access of drilling aquipment which is anticpiated to commence drilling in July 2006.
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